dable written statement that the consumer may retain, the following terms and conditions of the electronic fund transfer service, as applicable:

(1) A summary of the consumer's liability under § 205.6, or other applicable law or agreement, for unauthorized electronic fund transfers and, at the financial institution's option, the advisability of promptly reporting loss or theft of the access device or unauthorized transfers.

(2) The telephone number and address of the person or office to be notified when the consumer believes that an unauthorized electronic fund transfer has been or may be made.

(3) The financial institution's business days, as determined under § 205.2(d).

(4) The type of electronic fund transfers that the consumer may make and any limitations on the frequency and dollar amount of transfers. The details of the limitations need not be disclosed if their confidentiality is essential to maintain the security of the electronic fund transfer system.

(5) Any charges for electronic fund transfers or for the right to make transfers.

(6) A summary of the consumer's right to receive documentation of electronic fund transfers, as provided in §§ 205.9, 205.10(a), and 205.10(d).

(7) A summary of the consumer's right to stop payment of a preauthorized electronic fund transfer and the procedure for initiating a stop-payment order, as provided in § 205.10(c).

(8) A summary of the financial institution's liability to the consumer for its failure to make or to stop certain transfers under § 910 of the Act.

(9) The circumstances under which the financial institution in the ordinary course of business will disclose information to third parties concerning the consumer's account.

(10) A notice that is substantially similar to the following notice concerning error resolution procedures and the consumer's rights under them:

IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR ELECTRONIC TRANSFERS

Telephone us at [insert phone number]

or

Write us at [insert address]

as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent you the FIRST statement on which the problem or error appeared.

(1) Tell us your name and account number (if any).

(2) Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

(3) Tell us the dollar amount of the suspected error.

If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

We will tell you the results of our investigation within 10 business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will recredit your account within 10 business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not recredit your account.

If we decide that there was no error, we will send you a written explanation within 3 business days after we finish our investigation. You may ask for copies of the documents that we used in our investigation.

(b) Timing of disclosures for accounts in existence on May 10, 1980. A financial institution shall mail or deliver to the consumer the information required by paragraph (a) of this section on or before June 9, 1980, or with the first periodic statement required by § 205.9(b) after May 10, 1980, whichever is earlier, for any account that is open on May 10, and

(1) From or to which electronic fund transfers were made prior to May 10, 1980;

(2) With respect to which a contract for such transfers was entered into between a consumer and a financial institution; or

(3) For which an access device was issued to a consumer.

[44 FR 59470, Oct. 15, 1979, as amended at 45 FR 8263, Feb. 6, 1980]

§ 205.8 Change in terms; error resolution notice.

(a) Change in terms. A financial institution shall mail or deliver a written notice to the consumer at least 21 days before the effective date of any change in a term or condition required to be disclosed under § 205.7(a) if the change would result in increased fees or charges, increased liability for the consumer, fewer types of available electronic fund transfers, or stricter limitations on the frequency or dollar amounts of transfers. Prior notice need not be given where an immediate change in terms or conditions is necessary to maintain or restore the security of an electronic fund transfer system or account. However, if a change required to be disclosed under this paragraph is to be made permanent, the financial institution shall provide written notice of the change to the consumer on or with the next regularly scheduled periodic statement or within 30 days, unless disclosure would jeopardize the security of the system or account. However, if such a change is to be made permanent, the financial institution shall provide written notice of the change to the consumer on or with the next regularly scheduled periodic statement or within 30 days, unless disclosure would jeopardize the security of the system or account.

(b) Error resolution notice. For each account from or to which electronic fund transfers can be made, a financial institution shall mail or deliver to the consumer, at least once each calendar year, the notice set forth in § 205.7(a)(10). Alternatively, a financial institution may mail or deliver a notice that is substantially similar to the following notice on or with each periodic statement required by § 205.9(b):

IN CASE OF ERRORS OR QUESTION YOUR ELECTRONIC TRANSFE Telephone us at [insert telephone

or

Write us at [insert address

as soon as you can, if you think y ment or receipt is wrong or if you information about a transfer on ment or receipt. We must hear fro later than 60 days after we sent FIRST statement on which the problem appeared.

(1) Tell us your name and accoun (if any).

(2) Describe the error or the tra are unsure about, and explain as you can why you believe there is a why you need more information.

(3) Tell us the dollar amount of pected error.

We will investigate your compl will correct any error promptly. If more than 10 business days to do will recredit your account for the you think is in error, so that you use of the money during the time it to complete our investigation.

[44 FR 59471, Oct. 15, 1979, as ame 45 FR 8264, Feb. 6, 1980]

§ 205.9 Documentation of transfers (a) Receipts at electronic ter At the time an electronic fund fer is initiated at an electronic nal by a consumer, the financia tition shall make available 2 to tl sumer a written receipt O transfer(s) that clearly sets for following information, as applica

(1) The amount of the trans charge for the transfer may be i ed in this amount if the term owned or operated by a person than the financial institution h the consumer's account, provide amount of the charge is disclos the receipt and on a sign posted at the terminal.

(2) The calendar date the cons initiated the transfer.

(3) The type of transfer and type of the consumer's account(s

2 A financial institution may arrange third party, such as a merchant to mak receipt available.

3 If more than one account of the type may be accessed by a single a

Con

or from which funds are transferred, such as "withdrawal from checking,' "transfer from savings to checking," or "payment from savings." These descriptions may be used for transfers to or from accounts that are similar in function to checking accounts (such as share draft or negotiable order of withdrawal accounts) or to savings accounts (such as share accounts). Codes may be used only if they are explained elsewhere on the receipt.

(4) A number or code that uniquely identifies the consumer initiating the transfer, the consumer's account(s), or the access device used to initiate the transfer.

(5) The location (in a form prescribed by paragraph (b)(1)(iv) of this section) of the terminal at which the transfer was initiated or an identification (such as a code or terminal number).

(6) The name of any third party to or from whom funds are transferred; a code may be used only if it is explained elsewhere on the receipt. This requirement does not apply if the name is provided by the consumer in a form that the electronic terminal cannot duplicate on the receipt.

(b) Periodic statements. For any account to or from which electronic fund transfers can be made, the financial institution shall mail or deliver a statement for each monthly or shorter cycle in which an electonic fund transfer has occurred, but at least a quarterly statement if no transfer has occurred. The statement shall include the following, as applicable:

(1) For each electronic fund transfer occurring during the cycle,+

(i) The amount of the transfer. If a transfer charge was added at the time of initiation by the owner or operator

device, the accounts must be uniquely identified unless the terminal is incapable of such identification and was purchased or ordered by the financial institution prior to February 6, 1980. In a point-of-sale transfer, the type of account need not be identified if the access device used may access only one account at point of sale.

'The information required by paragraph (b)(1) of this section may be provided on accompanying documents. Codes explained on the statement or on accompanying documents are acceptable.

of an electronic terminal in accordance with paragraph (a)(1) of this section, that charge may be included in the amount of the transfer.

(ii) The date the transfer was credited or debited to the consumer's account.

(iii) The type of transfer and the type of the consumer's account(s) to or from which funds were transferred.

(iv) For each transfer initiated by the consumer at an electronic terminal, the location that appeared on the receipt or, if an identification (such as a code or terminal number) was used, that identification and one of the following descriptions of the terminal's location:

(A) The address, including number and street (the number may be omitted if the street alone uniquely identifies the terminal location) or intersection, city, and state or foreign country;5

(B) A generally accepted name for a specific location (such as a branch of the financial institution, a shopping center, or an airport), city, and state or foreign country; " or

(C) The name of the entity at whose place of business the terminal is located or which owns or operates the terminal (such as the financial institution or the seller of goods or services), city, and state or foreign country.8

4a A financial institution need not identify the terminal location for deposits of cash, checks, drafts, or similar paper instruments at electronic terminals.

5 The city and state may be omitted if all the terminals owned or operated by the financial institution providing the statement (or by the system in which it participates) are located in the same city. The state may be omitted if all the terminals owned or operated by the financial institution providing the statement (or by the system in which it participates) are located in that state. The state may also be omitted for transfers occurring at terminals within 50 miles of the financial institution's main office.

"See footnote 5.

'If the financial institution providing the statement owns or operates terminals at more than one location, it shall describe the location of its electronic terminals by use of paragraphs (b)(1)(iv)(A) or (B) of this section.

See footnote 5.

(v) The name of any third party to or from whom funds were transferred."

(2) The number(s) of the consumer's account(s) for which the statement is issued.

(3) The total amount of any fees or charges, other than a finance charge under 12 CFR 226.7(b)(1)(iv), assessed against the account during the statement period for electronic fund transfers or the right to make such transfers, or for account maintenance.

(4) The balances in the consumer's account(s) at the beginning and at the close of the statement period.

(5) The address and telephone number to be used for inquiry or notice of errors, preceded by "Direct Inquiries To:" or similar language. Alternatively, the address and telephone number may be provided on the notice of error resolution procedures set forth in § 205.8(b).

(6) If the financial institution uses the notice procedure set forth in § 205.10(a)(1)(iii), the telephone number the consumer may call to ascertain whether a preauthorized transfer to the consumer's account has occurred.

(c) Documentation for certain passbook accounts. In the case of a consumer's passbook account which may not be accessed by any electronic fund transfers other than preauthorized transfers to the account, the financial institution may, in lieu of complying with paragraph (b) of this section, upon presentation of the consumer's passbook, provide the consumer with documentation by entering in the passbook or on a separate document the amount and date of each electronic fund transfer made since the passbook was last presented.

(d) Periodic statements for certain non-passbook accounts. If a consumer's account other than a passbook account may not be accessed by any electronic fund transfers other than preauthorized transfers to the account, the financial institution need provide the periodic statement

re

A financial institution need not identify third parties whose names appear on checks, drafts, or similar paper instruments deposited to the consumer's account at an electronic terminal.

quired by paragraph (b) of thi only quarterly.

(e) Use of abbreviations. A institution may use commonly ed or readily understandable a tions in complying with the d tation requirements of this sec

(f) Receipt requirements for cash-dispensing terminals. The of a financial institution to with the requirement of parag of this section that a receipt available to the consumer at t an electronic fund transfer is i at an electronic terminal shall stitute a violation of the Act regulation, provided:

(1) The transfer occurs at a tronic terminal that:

(i) Does not permit transfer than cash withdrawals by the c er,

(ii) Cannot make a receipt a to the consumer at the time the fer is initiated,

(iii) Cannot be modified to pr receipt at that time, and

(iv) Was purchased or orde the financial institution prior ruary 6, 1980; and

(2) The financial institution m delivers a written receipt to th sumer that complies with the ot quirements of paragraph (a) section on the next business da lowing the transfer.

(g) Delayed effective date for d periodic statement requirements failure of a financial institution scribe an electronic fund trans accordance with the requireme paragraphs (b)(1) (iv) and (v) o section shall not constitute a vio of the Act or this regulation unle transfer occurs on or after Augu 1980, if, when a transfer invol payment to another person, the cial institution, upon the consu request, and without charge, pro provides the consumer with proof such a payment was made.

[45 FR 8264, Feb. 6, 1980, as amended FR 25383, Apr. 15, 1980; 45 FR 66347, ( 1980]

§ 205.10 Preauthorized transfers.

(a) Preauthorized transfers to a sumer's account. (1) Where a cons

's account is scheduled to be credited

a preauthorized electronic fund ansfer from the same payor at least ace every 60 days, except where the yor provides positive notice to the -nsumer that the transfer has been itiated, the financial institution all provide notice by one of the folwing means:

(i) The institution shall transmit ral or written notice to the consumer, ithin 2 business days after the transer, that the transfer occurred;

(ii) The institution shall transmit ral or written notice to the consumer, ithin 2 business days after the date n which the transfer was scheduled O occur, that the transfer did not

ccur; or

(iii) The institution shall provide a eadily available telephone line that he consumer may call to ascertain whether or not the transfer occured, nd shall disclose the telephone umber on the initial disclosures reuired by § 205.7 and on each periodic tatement.

(2) A financial institution that reeives a preauthorized transfer of the ype described in paragraph (a)(1) of his section shall credit the amount of he transfer as of the day the funds or the transfer are received.

(b) Preauthorized transfers from a consumer's account; written authoriation. Preauthorized electronic fund ransfers from a consumer's account nay be authorized by the consumer only in writing, and a copy of the auChorization shall be provided to the consumer by the party that obtains the authorization from the consumer.

(c) Consumer's right to stop payment. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution Forally or in writing at any time up to 3 business days before the scheduled date of the transfer. The financial institution may require written confirmation of the stop-payment order to be made within 14 days of an oral notification if, when the oral notification is made, the requirement is disclosed to the consumer together with the address to which confirmation should be sent. If written confirmation has been required by the financial institution,

the oral stop-payment order shall cease to be binding 14 days after it has been made.

(d) Notice of transfers varying in amount. Where a preauthorized electronic fund transfer from the consumer's account varies in amount from the previous transfer relating to the same authorization, or the preauthorized amount, the financial institution or the designated payee shall mail or deliver, at least 10 days before the scheduled transfer date, a written notice of the amount and scheduled date of the transfer. If the financial institution or designated payee informs the consumer of the right to receive notice of all varying transfers, the consumer may elect to receive notice only when a transfer does not fall within a specified range of amounts or, alternatively, only when a transfer differs from the most recent transfer by more than an agreed-upon amount.

[44 FR 59471, Oct. 15, 1979, as amended at 45 FR 8265, Feb. 6, 1980]

(1) A unauthorized electronic fund transfer;

(2) An incorrect electronic fund transfer to or from the consumer's account;

(3) The omission from a periodic statement of an electronic fund transfer to or from the consumer's account that should have been included;

(4) A computational or bookkeeping error made by the financial institution relating to an electronic fund transfer;

(5) The consumer's receipt of an incorrect amount of money from an electronic terminal;

(6) An electronic fund transfer not identified in accordance with the requirements of §§ 205.9 or 205.10(a); or

(7) A consumer's request for any documentation required by §§ 205.9 or 205.10(a), or for additional information or clarification concerning an electronic fund transfer. This includes any request for documentation, information, or clarification in order to assert an error within the meaning of paragraphs (a)(1) through (6) of this